The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to businesses that hire individuals from certain target groups who have consistently faced significant barriers to employment. Businesses can receive a credit ranging from $1,200 to $9,600 for hiring qualified individuals.
The Consolidated Appropriation Act, 2021 authorized the extension of the Work Opportunity Tax Credit (WOTC) until December 31, 2025.
A WOTC credit equal to 40% of the first $6,000 in qualified first year wages, for a maximum credit of $2,400. Qualified individuals must complete at least 120 hours of work to qualify for the partial WOTC credit of $1,500, and over 400 hours for the full $2,400 credit.
Employers must apply for and receive a certification verifying the new hire is a member of a targeted group before they can claim the tax credit. After the required certification is secured, taxable employers claim the WOTC as a general business credit against their income taxes, and tax-exempt employers claim the WOTC against their payroll taxes. The IRS Form 8850 and ETA Form 9061 should be retained at your business for auditing purposes for a period of four years.
How to Apply
There are two forms that a business must complete to submit a full application:
These forms MUST be submitted within 28 days of the new hire’s first day of work. If these forms are received later than that they are considered late and will be denied for tardiness.
Individuals that have previously worked for the business (aka rehires) do not qualify and will be denied.
WOTC forms can be submitted via US Mail, Email or Fax:
NYS Department of Labor
Attn: WOTC Unit
State Office Campus, Bldg 12, Rm 408
Albany, NY 12226
EMAIL: [email protected]
Business can apply for WOTC program directly. However, should they choose to use the services of a Tax Consultant, a current Power of Attorney form designating who is authorized to represent the business in WOTC matters must be on file with the NYS Department of Labor’s WOTC Unit.
NOTE: Effective May 31, 2024, WOTC Offices can no longer accept IRS Form 2848 Power of Attorney as authorization of representation. All Tax professionals must switch over to ETA Form 9198: WOTC Employer Representative Declaration by June 1, 2024.
Businesses are strongly encouraged to file their WOTC forms electronically through our Online Services Page. You will need an NY.GOV ID to log in, and you will need to add the WOTC form to your Online Forms page. This Navigation Guide will help get you started.
Tax Consultants interested in bulk importing should contact us at [email protected]
Eligible Target Groups
The WOTC Desk Aid explains in more detail the different target groups, and their eligibility criteria.
- Short-Term Recipients of Temporary Assistance to Needy Families (TANF) - $2,400
- Veterans - $2,400 - $9,600
- Ex-Felon - $2,400
- Designated Community Resident (DCR) - $2,400
- Clinton and Montgomery Counties, Syracuse, Lower Manhattan, South Bronx, and Yonkers
- Vocational Rehabilitation Referral - $2,400
- Summer Youth - $1,200
- Supplemental Nutrition Assistance Program (SNAP) Recipient (aka Food Stamps) - $2,400
- Supplemental Security Income (SSI) Recipient - $2,400
- Long-Term Family Assistance Recipient - $4,000
- Long-Term Unemployed - $2,400
Quarterly WOTC Certifications
Pursuant to Labor Law Section 854, the following data pertains to quarterly WOTC Certifications issued.
WOTC Certifications Issued by NYS DOL - Federal Fiscal Year 2021, Quarter 4 (July 1 - September 30, 2021)
Contact Contact WOTC
For the convenience of our applicants, the contact information for submitting WOTC forms via US Mail, Email or Fax is provided below.